Roche makes 'cheaper' bid for Genentech

GENEVA: Roche Holding AG, whose $43.7 billion bid to buy all of Genentech Inc in July was rejected, lowered the acquisition price by 2.8% and took the offer for the US cancer-drug developer directly to shareholders.

The $86.50-per-share cash offering replaces the original bid of $89 a share that was intended to lead to a negotiated merger, the Basel, Switzerland-based company said.

Roche, which will begin a tender offer within two weeks, wants to gain complete control of Genentech products including Avastin, the best-selling cancer medicine in the world.

Roche gained as much as 3.4% in Zurich trading to 165.7 Swiss francs, while Genentech gained 65 cents, or less than 1%, to close at $84.09 in New York on Thursday.